Workers lock Coral Springs exec in Chinese factory

A South Florida businessman says he has been held captive for five days in his suburban Beijing factory by angry workers, and a company official fears there is no immediate end to the siege.

Charles "Chip" Starnes, president of Coral Springs-based Specialty Medical Supplies Inc., said by phone on Monday that he has been prevented since Thursday from leaving his office in the Huairou district by up to 100 workers demanding severance pay after quitting their jobs.

"I'm in a complete shakedown right now, with no control, no access. I'm being blackmailed," said Starnes, 42. "It is a very bad situation that should not be happening."

His business partner, Les Capella, said he is concerned for Starnes' safety. "I am worried about him health-wise," said Capella. "And if an angry mob wants to make a run, I don't see anything stopping them. He needs to get out of there."

According to Starnes and Capella, the imbroglio began early last week after Starnes told about 50 of the plant's 180 workers they would be laid off due to a decision to stop producing one of the company's products, a blood lancet device used by diabetes patients.

The company intends to move production to Mumbai, India, said Capella. The laid-off workers were given a severance of about $5,000, in keeping with Chinese labor laws, Capella said.

When the plant's other workers, who produce and package gauze pads, heard about the severance, "they said forget about it, we're done, we want the money too," said Capella. Complying would mean the company would have to come up with $500,000 Capella said.

Nolan Barkhouse, a press officer at the U.S. Embassy in Beijng, said a representative from American Citizens Services met with Starnes on Monday.

"I am able to confirm that he is safe," said Barkhouse. "I can also confirm that his attorneys will have access to him."

Starnes said when the impasse began, workers locked arms to prevent him from leaving the plant and deprived him of food, water and sleep.

When he tried to sleep on a couch in the office, he said workers banged on the windows and door and shined lights in his eyes. At one point about 40 workers crowded into the office with him, he said. "It was sheer intimidation," he said.

On Friday, said Starnes, in front of a crowd that included workers, police and government officials, he was forced to sign Chinese language papers he did not understand.

"I said, I cannot sign because it would bankrupt the company," said Starnes. "There was no way in hell I could sign this stuff."

Ultimately, however, said Starnes, "I had no choice."

Starnes' wife Cecily said from their Parkland home that she had talked to him several times and he was scared, exhausted and hungry.

"It doesn't seem humane what they are doing," said Starnes, the mother of three young children.

Although police are standing by outside the plant, the dispute is considered a civil matter, according to Starnes.

Tim Heberlein, a Miami consultant who lived in China for 30 years, said militancy among Chinese workers is growing.

"This happens not only to foreign-invested companies, but to domestic companies as well," he said.

Heberlein said the workers who quit their jobs may be emboldened by a growing labor shortage, especially among low-skilled factory workers.

Specialty Medical Supplies opened its China operations about 10 years ago, said Capella.

On its website the U.S. State Department has posted a warning about the risks of doing business in China:

"If you or your company becomes involved in a civil business dispute in China, the Chinese government may prohibit you from leaving China, without advance notice, and until the matter is resolved under Chinese law," reads the advisory.